Skip to main content

Hello! how is your Avg. LTV calculated?

The Average Customer LTV is calculated by considering parameters such as Average Time a Customer stays, Total Orders, Total Sales, and Total Customers.

First, we calculate the Average Time by dividing the Total Months by the Total Customers and then dividing by 12. Then, we determine LTV by multiplying Total Sales by Total Orders, and then multiplying that by the ratio of Total Orders to Total Customers, and finally multiplying it by the Average Time.

This formula provides an estimate of the average lifetime value of a customer, taking into account their spending habits and how long they typically stay with the business.